Harleysville Financial Corporation (OTCQX:HARL) reported today that the Company’s board of directors declared a regular quarterly cash dividend of $.31 per share on the Company’s common stock. The cash dividend will be payable on August 14, 2024 to stockholders of record on July 31, 2024.

Net income for the third quarter was $2,186,000 or $.60 per diluted share compared to $2,801,000 or $.76 per diluted share for the same quarter last year.

Net income for the nine months ended June 30, 2024 amounted to $6,809,000 or $1.87 per diluted share compared to $9,205,000 or $2.47 per diluted share for the same nine-month period a year ago.

“We continue to be impacted by the compression of net interest margin, as indicated by the increase in interest expense, however we are pleased with commercial and consumer loan growth,” stated Brendan J. McGill, President, and Chief Executive Officer of the Company. McGill continued “Asset quality and capital levels remain strong as we continue to navigate the economic environment with discipline, ensuring we remain a competitive and an attractive option to our existing and prospective customers.”

The Company’s assets totaled $863.9 million compared to $829.9 million a year ago. Stockholders’ tangible book value increased 1.7% to $23.65 per share from $23.26 a year ago.

Harleysville Financial Corporation is traded on the OTCQX market under the symbol HARL ( http://www.otcmarkets.com ) and is the holding company for Harleysville Bank. Established in 1915, Harleysville Bank is a Pennsylvania chartered and federally insured bank, headquartered in Harleysville, PA. The Bank operates from six full-service offices located in Montgomery County and one office located in Bucks County, Pennsylvania.

This presentation may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995). Actual results may differ materially from the results discussed in these forward-looking statements. Factors that might cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, real estate values and competition; changes in accounting principles, policies, or guidelines; changes in legislation or regulation; and other economic; competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products, and services.

Harleysville Financial Corporation Selected Consolidated Financial Data as of June 30, 2024 (Dollars in thousands except per share data) Year-To-Date (Unaudited) Nine Months Ended: Three Months Ended:   Selected Consolidated Earnings Data Jun 30,2024 Jun 30,2023 June 30,2024 Mar 31,2024 Dec 31,2023 Sep 30,2023 June 30,2023 Total interest income

$

27,999

 

$

25,504

 

$

9,555

 

$

9,268

 

$

9,176

 

$

8,728

 

$

8,395

 

Total interest expense

 

8,797

 

 

2,212

 

 

3,261

 

 

2,984

 

 

2,552

 

 

1,664

 

 

874

 

  Net Interest Income

 

19,202

 

 

23,292

 

 

6,294

 

 

6,284

 

 

6,624

 

 

7,064

 

 

7,521

 

Provision for loan losses

 

24

 

 

595

 

 

13

 

 

4

 

 

8

 

 

(595

)

 

146

 

Net Interest Income after Provision for Loan Losses

 

19,178

 

 

22,697

 

 

6,281

 

 

6,280

 

 

6,616

 

 

7,659

 

 

7,375

 

  Bank owned life insurance

 

301

 

 

295

 

 

99

 

 

100

 

 

102

 

 

101

 

 

97

 

Other income

 

1,616

 

 

1,692

 

 

550

 

 

486

 

 

580

 

 

617

 

 

593

 

Total other expenses

 

12,309

 

 

12,372

 

 

4,228

 

 

4,110

 

 

3,971

 

 

4,317

 

 

4,325

 

  Income before income taxes

 

8,786

 

 

12,312

 

 

2,702

 

 

2,756

 

 

3,327

 

 

4,060

 

 

3,740

 

Income tax expense

 

1,977

 

 

3,107

 

 

516

 

 

644

 

 

817

 

 

1,042

 

 

939

 

  Net Income

$

6,809

 

$

9,205

 

$

2,186

 

$

2,112

 

$

2,510

 

$

3,018

 

$

2,801

 

    Per Common Share Data Basic earnings

$

1.87

 

$

2.48

 

$

0.60

 

$

0.58

 

$

0.69

 

$

0.82

 

$

0.76

 

Diluted earnings

$

1.87

 

$

2.47

 

$

0.60

 

$

0.58

 

$

0.69

 

$

0.82

 

$

0.76

 

Dividends

$

0.92

 

$

0.89

 

$

0.31

 

$

0.31

 

$

0.30

 

$

0.30

 

$

0.30

 

Special Dividend

$

1.20

 

$

1.16

 

$

-

 

$

-

 

$

1.20

 

$

-

 

$

-

 

Tangible book value

$

23.65

 

$

23.26

 

$

23.65

 

$

23.34

 

$

23.05

 

$

23.76

 

$

23.26

 

Shares outstanding

 

3,626,559

 

 

3,663,905

 

 

3,626,559

 

 

3,635,367

 

 

3,646,269

 

 

3,670,488

 

 

3,663,905

 

Average shares outstanding - basic

 

3,640,164

 

 

3,706,846

 

 

3,632,261

 

 

3,644,446

 

 

3,643,746

 

 

3,661,248

 

 

3,688,845

 

Average shares outstanding - diluted

 

3,648,620

 

 

3,729,231

 

 

3,640,387

 

 

3,653,117

 

 

3,652,493

 

 

3,674,442

 

 

3,706,597

 

      Year-To-Date Nine Months Ended: Three Months Ended: Other Selected Consolidated Data Jun 30,2024 Jun 30,2023 June 30,2024 Mar 31,2024 Dec 31,2023 Sep 30,2023 June 30,2023 Return on average assets

 

1.07

%

 

1.43

%

 

1.02

%

 

0.99

%

 

1.18

%

 

1.44

%

 

1.35

%

Return on average equity

 

10.70

%

 

14.65

%

 

10.28

%

 

10.04

%

 

11.79

%

 

14.07

%

 

13.24

%

Net interest rate spread

 

2.68

%

 

3.59

%

 

2.58

%

 

2.62

%

 

2.83

%

 

3.20

%

 

3.58

%

Net yield on interest earning assets

 

3.07

%

 

3.69

%

 

3.01

%

 

3.02

%

 

3.19

%

 

3.45

%

 

3.71

%

Operating expenses to average assets

 

1.93

%

 

1.93

%

 

1.98

%

 

1.93

%

 

1.87

%

 

2.06

%

 

2.09

%

Efficiency ratio

 

58.28

%

 

48.94

%

 

60.89

%

 

59.82

%

 

54.35

%

 

55.47

%

 

52.67

%

Ratio of non-performing loans to total assets at end of period

 

0.20

%

 

0.28

%

 

0.20

%

 

0.21

%

 

0.28

%

 

0.31

%

 

0.28

%

Loan loss reserve to total loans, net

 

0.69

%

 

0.89

%

 

0.69

%

 

0.71

%

 

0.71

%

 

0.77

%

 

0.89

%

Stockholders' equity to assets

 

9.93

%

 

10.27

%

 

9.93

%

 

10.01

%

 

9.85

%

 

10.35

%

 

10.27

%

    Selected Consolidated Financial Data Jun 30,2024 Mar 31,2024 Dec 31,2023 Sep 30,2023 June 30,2023 Total assets

$

863,899

 

$

847,416

 

$

853,315

 

$

842,274

 

$

829,933

 

Cash & investment securities

 

22,892

 

 

20,853

 

 

23,626

 

 

22,168

 

 

25,623

 

Mortgage-backed securities

 

132,621

 

 

138,072

 

 

142,677

 

 

147,821

 

 

153,205

 

Total Investments

 

155,513

 

 

158,925

 

 

166,303

 

 

169,989

 

 

178,828

 

Consumer Loans receivable

 

335,802

 

 

325,483

 

 

325,654

 

 

318,349

 

 

305,780

 

Commercial Loans receivable

 

337,872

 

 

329,235

 

 

327,093

 

 

320,384

 

 

314,756

 

Loan loss reserve

 

(4,668

)

 

(4,662

)

 

(4,663

)

 

(4,919

)

 

(5,525

)

Total Loans receivable net

 

669,006

 

 

650,056

 

 

648,084

 

 

633,814

 

 

615,011

 

FHLB stock

 

5,366

 

 

4,813

 

 

5,550

 

 

5,144

 

 

3,024

 

Checking accounts

 

255,110

 

 

264,294

 

 

266,353

 

 

272,835

 

 

286,725

 

Savings accounts

 

223,101

 

 

229,208

 

 

239,496

 

 

257,246

 

 

282,425

 

Certificate of deposit accounts

 

180,007

 

 

166,664

 

 

140,194

 

 

117,687

 

 

110,898

 

Total Deposits

 

658,218

 

 

660,166

 

 

646,043

 

 

647,768

 

 

680,048

 

Advances

 

108,078

 

 

92,757

 

 

113,430

 

 

98,045

 

 

53,245

 

Total stockholders' equity

 

85,765

 

 

84,837

 

 

84,039

 

 

87,213

 

 

85,212

 

 

FOR FURTHER INFORMATION M. Shane Michalak Senior Vice President/CFO 215-256-8828